Self-employed 11E paying PRSI?

mambazo

Hi, this is likely a silly question, but as I fill out my Form 11E, I cannot see how to pay PRSI when filing the return.

The Pay Slip at the end only has fields for TAX itself, and nothing for the PRSI contribution.

Unless its under some other name or heading in the form, the only place PRSI is mentioned is on Page 2 - Section A - Field 12, which asks if you are exempt. (I'm not exempt, I don't think).

So my question is, how do I pay my PRSI?

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A side question... I've read many places that as a Single person, I am entitled to €1830 tax credits, but I cannot see where on the form to indicate this. Any ideas?

Legend100

For the PRSI - what sort of income are you declaring?


The personal credit will be automatically given to you when you tick the single box at the start of the form

mambazo

I don't quite understand the question, unless you mean the amount of income?

It's a low figure, from website development work.

Assessable profit ~€7,500.00

Legend100

was just checking if it was trading income and not other income.

you don't put in the figure for PRSI anywhere on the form, it is simply part of the calculation of the final figure due.

If you have total income (from all sources) under 26K, you will pay class S PRSI at 3% on the profit.

If you are over the 26k, you must pay the 3% PRSI and 3.33% health levy on the profit.

You will also have income levy to pay

mambazo

Thanks for the help.

So I just include the 3% of my ~€7k in the payslip figure?

I assume this is added after Tax Credits are deducted? Otherwise I'd be paying nothing at all.

~10k turnover
~7k profit

20% of 7k is less than €1830... €0 tax to pay..

+3% of ~7k = €210 (final payslip figure for 2009?)

Is there a minimum PRSI contribution, I recall reading something but it was not clear.

This income amount is exempt from Income Levy isn't it (under €15,028)?

Legend100

yeah that is all correct

But did you have any income from other source in 2009 ie namely a salary from employment as tax is payable on gross income.

If you have no other income, you will only be liable to prsi. the minimum class s contribution is 253

mambazo

No other income. Registered as Self-Employed starting March 25 2009. Prior to that I was in third level education doing a research scholarship.

Never been employed either

I take it I do my accounts from 25th March to 31st December 2009, then start with 01 Jan 2010 on my next return, is that right?

Thanks for all your help!

Legend100

for practical reason, they are the best dates to go for

for tax efficiency they may not be but i would have to see the accounts and your projected income going forward to give you proper answer

since it is small income that will not be taxed, you would be fine going with a december year end

oh and you dont actually have to do your first return until october next year as you are in a commencement situation. You do have to pay the tax (prsi in your case) and you also need to pay preliminary tax for next year by 31st october this year though.

You will need to pay the 253 for PRSI and another 253 for prelim tax for 2010

mambazo

Projected earnings for 2010 are almost the same, so I guess it is a good idea to do the 2009 return now and have it out the way (less hassle later on?).

I'll hopefully be talking to an accountant in person soon, just for help on actually filling in the right fields.

Thanks a mil for the help!